Section 3 - The Road Out of Poverty PDF Print E-mail

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Section 3 - The Road Out of Poverty

Section 3 of the HUD Act of 1965 is a sure way to end poverty for the residents of public housing and others living under the poverty level. It was written as a response to the first Los Angeles Riot of 1965 (Watts) and was revised after the second Los Angeles Riot of 1992 (Rodney King).

Section 3 works and all NBCC affiliates should be sure that the local housing authorities and cities within its domain enforces it. Today, Section 3 is only actively enforced in five cities and, thus, poverty is handed down from generation to generation within public housing units.

In essence, HUD monies ($90 billion per year) are to be used to train and employ people living under the poverty level. At least, 30% of all new hires with HUD monies, such as housing grants and CDBG funds, are to be from public housing, Section 8 and welfare recipients. LET’S ENFORCE SECTION 3!

What is Section 3?
It is a means by which HUD fosters local economic development, neighborhood economic improvement, and individual self-sufficiency. Section 3 is the legal basis for providing jobs for residents and awarding contracts to businesses in areas receiving certain types of HUD financial assistance. Under Section 3 of the HUD Act of 1968, wherever HUD financial assistance is given for housing or community development, to the greatest extent feasible, economic opportunities will be given to residents and businesses in that area.

Section 3 Policy
Congress established the Section 3 policy to ensure that the employment and other economic opportunities generated by Federal financial assistance for housing and community development programs shall, to the greatest extent feasible, be directed toward low and very low income persons, particularly those who are recipients of government assistance for housing.

Who are Section 3 residents?
Residents of public housing and low income persons who live in the area in which a HUD-assisted project is located.

What is a Section 3 business?
A business that: Is owned by Section 3 residents or Employs Section 3 residents in full-time positions or Subcontracts with businesses that provide economic opportunities to low income persons.

Who will award the economic opportunities?
Recipients of HUD financial assistance and their contractors and subcontractors are required to provide economic opportunities to the greatest extent feasible, consistent with existing Federal, State, and local laws and regulations.

Who receives priority under Section 3?
For training and employment:

  • Persons in public and assisted housing;
  • Persons in the neighborhood;
  • Participants in HUD Youthbuild programs;
  • Homeless persons.

For contracting: Businesses which fit the definition of a Section 3 business.

How can businesses find Section 3 residents to work for them?
Business can recruit in the neighborhood and public housing developments to tell residents about available training and job opportunities. Distributing flyers, posting signs, placing ads, and contacting resident organizations and local community development and employment agencies to find potential workers are effective ways of getting jobs and people together.

How can businesses and low income persons find out more about Section 3?
Contact the Fair Housing and Equal Opportunity representative at your nearest HUD Field Office or the HUD community Builder.

What kinds of economic opportunities?

  • Job training
  • Employment Contracts

What if it appears an entity is not complying with Section 3?
There is a complaint process. Section 3 residents and business concerns may file complaints if they think a violation of Section 3 requirements has occurred where a HUD-funded project is planned or underway. Complaints will be investigated; if appropriate, voluntary resolutions will be sought. A complaint that cannot be resolved voluntarily can result in an administrative hearing.

Will HUD require compliance?
Yes. HUD receives annual reports from recipients, monitors the performance of contractors and investigates complaints. HUD examines employment and contract records for evidence of actions taken to train and employ Section 3 residents and to award contracts to Section 3 businesses.

How can Section 3 businesses or residents complain about a violation of Section 3 requirements?
They can file a complaint in writing to the local HUD Field Office or to:

The Assistant Secretary for Fair Housing and Equal Opportunity
U.S. Department of Housing and Urban Development
451 Seventh Street, S.W., Room 5100
Washington, D.C. 20410-2000

A written complaint should contain:

  • Name and address of the person filing the complaint;
  • Name and address of subject of complaint (HUD recipient or contractor);
  • Description of acts or omissions in alleged violation of Section 3;
  • Statement of corrective action sought.
 
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